Why Cross Border Online Shopping is Growing

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cross border shopping

The Chinese online shopping world is massive. There are new platforms entering into the market, while new companies enter onto these online shopping platforms. With this being said, there are still tons of Chinese consumers who are making the bulk majority of their purchases online. In addition, many of these consumers are looking at cross border online shopping as the method for meeting their needs.

What is Cross Border Online Shopping?

Many Chinese consumers are no longer interested in buying domestic products. Instead, they are reach out to the other sides of the world for the products that they are wanting. This has brought about Cross Border Online Shopping. This type of shopping revolves around the Chinese consumers who are interested in products from other countries. These consumers are purchasing these online, through either the numerous online platforms focused in China or through the foreign website of the company. Cross border online shopping has become a huge option, as Chinese consumers are looking for value and quality products before spending their hard earned money.

Chinese Online Market is Large Now and is Still Growing

The number of online retailers in China is staggering. For the first quarter of 2015, China has sold around 1645.9 billion yan ($265.33 billion) of goods. If this figure stands for the rest of the year, China is facing what could be its best year for online shopping, beating out other online markets in other countries with ease. The number of potential customers that are being found with Chinese online shopping are astronomical. Why wouldn’t a business try to reach some of these customers and claim them for themselves? This is one of the main reasons why so many companies are looking into entering into the online Chinese market, as the potential for customers is high. While several other companies are gearing their marketing campaigns towards Chinese consumers in an effort to get them to check out their products and eventually purchase from that company.

Chinese Consumers Want Foreign Products

Many people think that Chinese consumers are all about finding the best price for the products they want, and while this is true, recent trends are showing how consumers want value and quality. Therefore, Chinese consumers are willing to pay a bit more for those high end luxury items, if it does meant that the product is going to be better. For example, Chinese shoppers are buying skin care products from the US on a regular basis online. The reason for this trend? They find that the products are actually much more affordable than what they can find domestically. In addition, they are getting a skin care product that is considered a high quality product that will render results.

Interested in learning where Chinese consumers are shopping across the border? Check out this infographic

Quality and Authenticity: The Two Key Factors of Cross Border Online Shopping

When asking any Chinese consumer why they prefer to buy products from other countries, the top two answers are:

  1. For a product that is of a higher quality
  2. For a product that is authentic

The troubles that the online shopping market has had with counterfeit products is no secret, and though platforms are making gains in this department, there is still a risk for purchasing said counterfeit products.

Cross border shopping is not going to end any time soon. Many Chinese consumers are interested in foreign brands, and they are becoming dedicated consumers to these brands. Though the number of domestic products on the online market are rising and are aiming to take the place of cross border products, Chinese consumers seem to still be stuck on purchasing from overseas and living a “hai tao” life.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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